Court: China-built Port City commission needs public assent

COLOMBO, Sri Lanka (AP) — Sri Lanka’s top court has decided that some provisions of legislation to set up a powerful economic commission in a Chinese-built port city violate the constitution and require approval by a public referendum to become law.

At the center of the dispute are fears that the $1.4 billion port city, part of China's sweeping Belt and Road infrastructure initiative, could become a virtual Chinese outpost or colony.

The government is looking to the project as a lifeline for an economy hard stricken by the pandemic.

Parliament Speaker Mahinda Yapa Abeywardena read out the Supreme Court's ruling on the Colombo Port City Economic Commission Bill on Tuesday. The court said the bill could undermine the exclusive lawmaking powers of Parliament by empowering the proposed five-to-seven member commission, appointed by the president, to set and enforce rules within the port city.

That provision, and proposed heavy fines and long prison terms for those found breaching those rules, will require a two-thirds approval in the 225-seat Parliament and public approval through a referendum, the court said.

It pointed to other problems, such as sections exempting companies operating within the port city, which is due to be a special economic zone, from various laws on the grounds the businesses are strategically important.

Such laws include those related to taxes, customs, betting and gaming levies, employee terminations, entertainment taxes, foreign exchange and casino business laws.

Some other provisions don't require a referendum but do need approval by a two-thirds majority in Parliament, the court said. The government can amend the bill to conform with that and submit it for debate on Wednesday, with a vote expected on Thursday.

Approval is likely since the...